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HomeMy WebLinkAbout2.A. Senior Housing Developer Discussion 4 ROSEIvIOL[N4 EXECUTIVE SUMMARY CITY COUNCIL City Council Work Session: July 17, 2012 AGENDA ITEM: Senior Housing Developer Discussion AGENDA SECTION: Discussion PREPARED BY: Kim Lindquist, Community Development AGENDA NO. 2A Director ATTACHMENTS: Information from Doren, Information from APPROVED BY: Stonebridge DJ RECOMMENDED ACTION: Discussion Item ISSUE In summer of 2011, the City went out for RFQ to find a senior housing development partner to locate a project on the northern portion of the St. Joseph's property. The idea would be to remove the existing school structure and install a new public senior center and private senior housing project. In September, the City Council interviewed three development teams and on October 4, 2011, made a motion to work with DRA on the senior housing project. Since that time there have been several meetings between staff and the development team. A concept plan had been designed which has been presented at previous council meetings. However, the project appears to have stalled as the development team continues to look for financing to construct the project. A copy of the anticipated timeline that was part of the DRA proposal is attached for your information. City staff had given Mr. Trucker, the project manager, a deadline of May 31 to move the project forward. At the June City Council worksession the Council discussed the delays that have occurred and requested financial information assuring the project could move forward by July 10, 2012. Specifically requested was: The Council would like to receive a commitment letter from a lender, summarizing the terms of the agreement. They are also looking for a letter from you, or another team representative, clarifying you have the necessary capital to complete the project. (Wednesday June 13 email to Jim Trucker) On June 20, a meeting occurred with City staff, Jim Trucker, Kelly Doren and Bill Stoddard. The latter two represented Doren companies, which expressed interest in taking on the project. Doren is a Twin Cities builder who has done a variety of high profile projects including retail shopping centers, single occupancy buildings, and multi - family projects, including recent student housing near the University Campus. This would represent the first move into the senior housing market for the company and they have brought on Bill Stoddard to assist in overseeing the project and managing the project after construction is complete. Per Council discussion in June, I have contacted the other two development teams who responded to the original RFQ and updated them on the Council action and confirmed their continued interest. In response, both firms indicated a continued interest and a willingness investigate working with Ebenezer as the senior housing management company. Both were made aware of the request of the Council about financial information and both were told of the upcoming meeting should they wish to attend. The Frisbee /Winkelman Group requested that they continue to be updated. The Stonebridge Group has provided financial and tuning information for the Council's review. DISCUSSION At the June Council meeting the direction was to either receive good financial information from the selected team or look at other alternatives. The introduction of a new team, Doren Companies, to replace the previously selected team was not contemplated in those discussions. There appears to be several issues for the Council to discuss relating to process, deliverability, and development team composition. PROCESS The initial process was through an RFQ process that received three responses and an interview. All of the teams addressed the components of the RFQ and in staff's recollection, the selected team was chosen in part due to the various team members. There was specific interest by the Council during the interviews about the long -term management of the facility after construction. In review of the RFQ (attached) there were five required components of the RFQ response. Description of the Development Team Description of Two Comparable Projects Finance Plan Project Management of Development Proposed General Development Information. In staff opinion the information provided by Doren Companies generally fulfills many of the RFQ components. And to be fair, staff did not request all of that information be provided, so a side -by -side comparison isn't appropriate. Further staff believes that the information provided by Doren Companies and Stonebridge indicates that they are both capable of financing a Rosemount project. Further, their development experience would indicate that they have the resources and relationships to attract outside financing if necessary. The Council should have a discussion about development team selection given the changes in circumstance. The Council is not bound contractually to the previously selected Team, nor is it bound to choose only among the groups which answered the RFQ one year ago. However, the Council should ultimately be comfortable about their decision - making process. Deliverability What precipitated this Council discussion was the delay in moving the project forward. The City had hoped to have construction of the project underway by now. The DRA timeline had projected occupancy by November 2012. The Doren Companies information indicates that they expect 6 to 8 month to produce final construction drawings. They have provided a revised concept plan and have indicated that refinement beyond the concept plan stage will require an agreement with the City. Based upon the Doren Companies information, they intend to build, own and operate the senior housing project. In our meeting with Doren Companies representatives , they indicated they could build the public senior center but would not design the building. This is not seen as a negative, it is just a change from what was initially anticipated and should be noted. Doren indicated they are open to assist in programming at the senior center and would be interested in joint programming with the senior housing residents. 2 Development Team The Doren Team indicates that they develop, build, own and operate their projects internally. It appears from their information, if chosen they will be the sole contact for the project. The brochure provides numerous projects that the company has been involved in. They recognize that this will be their first senior housing project and have indicated the Bill Stoddard will be the point person for the project after construction. The bio provided indicates he has been involved in numerous assisted living communities although the only project mentioned is the one he continues to own in Florida - Paradise Care Cottage. Stonebridge had indicated that they would partner with Southview Senior Communities. As the Council may recall, Southview is the same management company that runs the senior project in Inver Grove Heights, off of Hwy 3. More recently staff has received information from Ebenezer that they would be happy to work with Stonebridge on the Rosemount senior housing project. I believe Stonebridge has had exploratory conversations with Ebenezer about a partnership, should the opportunity arise. During the interview process, the issue of long -term management was of significant interest to the Council members in attendance. Given that the two development teams mentioned both will be owner operators there may be more incentive to ensure proper management. However, the two companies being explored Y P p g � P g a � by Stonebridge are known locally, whereas the experience from Doren is less known. Additional investigation by the Council may be warranted. It is also understood that this will be the first senior housing project for Doren. RECOMMENDATION Staff is looking forward to a discussion about the project and options associated with moving the project forward. The information above has tried to extract some of the more pertinent information from all that has recently been submitted, much of which is attached. After discussion, the Council should provide direction to staff. 3 Doran Companies Senior Housing Information Received July 2, 2012 July 10, 2012 July 11, 2012 DORAN COMPANIES July 3, 2012 Ms. Kim Lindquist Community Development Director City of Rosemount 2875 145' Street Rosemount, MN 55068 RE: City of Rosemount Senior Housing Project Dear Ms. Lindquist It was a pleasure meeting with you, Dwight Johnson and Dan Schultz at your office Tuesday June 26 We love the work your city has done regarding your development plan, revitalization and recent citywide improvements. Your vision of senior housing on the iconic St Joseph site including a senior center is paramount to its success. Doran Companies develops, builds, owns and operates our projects internally. We have completed and /or have under construction about $175,000,000 of owned projects in the last five years, including Sydney Hall, Dinkydome Lofts, 412 Lofts, The Edge on Oak, and 1 101 University, which are all located in the Dinkytown area, as well as our new Mill & Main project along the Mississippi River. Our history of being owners allows us to completely understand a project from an owner's perspective. However, we also provide services to third- parties as well. Currently, we have about 10 third -party projects either under construction or in the development stages totaling about $143,000,000. Enclosed is a reference letter from TCF Commercial Banking which is one of several lenders we use (refer to enclosed lender letter). We have ample capital to develop this project. We respect the work and enthusiasm that the DRA team has done to -date on this project, however we welcome that team and Rosemount handing the baton to us for a chance to bring your years of efforts to fruition. We understand the City of Rosemount wishes to advance this project ASAP. Doran Companies has proven over the last several years that we can move forward faster than our competitors. We have already studied the concept plans to -date and are refining the site and floor plans for this project. Advancement from the concept stage forward will require an agreement with the city, an updated Maxfield market study, about two months for plan development running concurrently with our in -house due diligence along with the city demolishing the school building, city approval process adding an additional time Rosemount can better estimate (assume two more months), obtaining our Minnesota Dept of Health opinion letter for the project, obtaining other property entitlements, site utilities and infrastructure studies and producing final construction drawings along with building permits. This whole process may take six to eight months or more depending on the above process, environmental and utility hurdles we could encounter. DEVELOPMENT CONSTRUCTION MANANAGEMENT RESIDENTIAL 7803 Glenroy Road, Suite 200 Bloomington, MN 55439 952 -288 -2000 Fax: 952 - 288 -2001 www. DoranCompanies.com Ms. Kim Lindquist July 3, 2012 Page 2 We look forward to learning more about your needs. Sincerely, William J Stoddard Vice President of Development Doran Development, LLC (952) 288 -2047 bill@dorancompanies.com www.dorancompan ies.com rW -A` DORAN COMPANIES SENIOR LIVING COMMUNITY DEVELOPMENTAL APPROACH FOR THE CITY OF ROSEMOUNT Doran Companies develops, builds, owns and operates senior living communities and a host of other projects internally. We have numerous in -house experts in design, construction and management. William J Stoddard, our VP of Development, has been in the engineering and construction business for over 32 years, with about half of that period spent developing, owning and operating numerous senior living projects and communities in the state of Florida where he still owns and operates one community. Even more, our founder Kelly Doran has a breadth of senior housing experience including being a past member of the board of directors at Walker Methodist. In addition, we work with many outside design experts and subcontractors to achieve a great final result. In the senior housing arena, our mission is to become the premier senior living residence chosen by seniors who require personalized living while promoting independence, along with a heavy dose of tender loving care. Our communities will have a homey feel but will offer services that our residents previously would have found while "on vacation." As we mentioned, Doran Companies would be interested in building, owning and operating the senior living community in your city. We understand you wish to maintain ownership in a new senior center contiguous to it. We think that is a great idea and we have some initial thoughts we would like your feedback on. Doran Companies would build the senior center on land owned by Rosemount, but it would be owned by the City. The senior center would be attached to the Steeple Center and as well as our proposed senior living community. You would own, maintain and manage your senior center, however our Activities Director could host and oversee daily events at your center that are open to the public and our residents including fitness and wellness activities, arts & crafts, book clubs, and many more. Thereby we handle the daily grind and you make the overall decisions. Our proposed adjacent senior living community would include a mix of independent and assisted living as well as memory care. It would be a place where residents would "age -in- place" with dignity and be proud of to call home. it will be built, owned and operated by Doran Companies, with a host of in -house certified nursing assistants, caregivers and registered nurses, along with outside visiting nurses and visiting home health agencies who will work directly with some residents. We also may have collaborations and agreements with other senior housing managers. Our in -house amenities may include an internet cafe, bistro, ice cream parlor, theatre, chapel, library, hair salon, pub and a small marketplace for sundries. We will have community open houses to reach out to the community to help us further understand their needs and desires. We love the idea of the St. Joseph Steeple Center being a Rosemount Development Plan focal point. We p P g l p intend to have a wide range of activities for seniors to choose from at our community and we look forward to listening to your needs and the needs of the community. We look forward to learning more about your needs and developing a "timeless" community we can all be proud of for generations to come. f; ' it COMMERCIAL BANKING June 29, 2012 Dwight Johnson City Administrator Rosemount Administration 2875 145 Street West Rosemount, MN 55068 -4997 Re: Doran Companies . Dear Mr. Johnson: • TCF Bank has enjoyed an excellent business relationship with Kelly Doran and the Doran Companies. The relationship includes acquisition and construction financing in excess of $40 million as well as a depository relationship. Kelly Doran and his team have proven themselves to be excellent developers and operators and have provided the expertise required for complex commercial real estate transactions. TCF Bank and senior management hold Kelly and his group in very high regard. He has performed as agreed and been a terrific partner. If you have any questions, or if I can be of further assistance, please do not hesitate to call me at 952 -512 -6436. Sincerely, 1 4 /. I Steve Cliffor Assistant Vice President TCF Commercial Banking. This letter is for discussion purposes only, and it does not create a contract or legally binding agreement. 11100 Wayzata Boulevard, Suite 600 • Minnetonka • MN • 55305 MEMBER FDIC it EQUAL HOUSING LENDER y4:, +wr . ... COMMERCIAL BANKING June 29, 2012 Kim Lindquist Community Development Director Rosemount Community Development 2875 145 Street West Rosemount, MN 55068 -4997 Re: Doran Companies Dear Ms. Lindquist: TCF Bank has enjoyed an excellent business relationship with Kelly Doran and the Doran Companies. The relationship includes acquisition and construction financing in excess of $40 million as well as a depository relationship. Kelly Doran and his team have proven themselves to be excellent developers and operators and have provided the expertise required for complex commercial real estate transactions. TCF Bank and senior management hold Kelly and his group in very high regard. He has performed as agreed and been a terrific partner. If you have any questions, or if I can be of further assistance, please do not hesitate to call me at 952 -512 -6436. Sincerely, AreA0 Steve Clifford Assistant Vice President TCF Commercial Banking. This letter is for discussion purposes only, and it does not create a contract or legally binding agreement. 11100 Wayzata Boulevard, Suite 600 • Minnetonka • MN • 55305 MEMBER FDIC di EQUAL NOOSING LENDER Doran Companies Introduction The Doran business family is a multi- segmented, service -based company that provides development, construction, leasing and property management services to our clients. Because we are both a contractor and an Owner, our team understands commercial real estate projects from more than one direction and this knowledge changes our approach to preparing for, and completing projects. Our approach is simple; your project is our project. Quality, attention to detail, and lasting value is our focus. A little more than 9 years ago, Robert Muir Development Company a premier real estate developer in the Twin City area started a construction firm to primarily construct their retail centers in the Twin City area. Originally called Muir /Doran Construction, the firm completed the base shell construction as well as the tenant build -outs. We also began third party construction relationships with several other clients and building types, maintaining the same quality construction standards as we do building our own projects. In 2007, Kelly Doran started Doran Companies to continue the successes achieved by the Robert Muir Company and began a company that included development, construction and property management. Doran Construction branched out to more 3rd party clients maintaining their focus on retail projects for several national clients like LA Fitness, Petco, Menards, Holiday Inn, Walgreens, and CVS Pharmacy. The construction company also completed over 500 housing units within the metro area, with another 355 currently under construction and 600+ in the development phase. In recent history, Doran Construction has been able to increase its annual revenues, add staff to the growing team and continues overall growth. This can be attributed to the quality of work, great value and customer service realized by the repeat clients. Doran Construction is an award winning full service commercial construction contractor doing work in the Upper Midwest area. Our principal and project managers have significant experience in construction and the related fields of commercial development. We use that experience to manage the construction process with a keen sense of responsibility for our client's timeframes and bottom line while delivering a final product that exceeds expectations. Our company contracting capabilities include everything from preconstruction services, construction management, design build, build -to -suit, and tenant finish improvements. Doran Construction is proud of our award winning tradition and our reputation as a contractor /construction manager that can be relied upon to bring experienced managers and quality subcontractors to the job. Our high standards are the foundation of our tradition and reputation and we work hard to uphold those principles while adding value to our client's projects and setting the standard for excellence in construction. Due to our attention to detail, design and construction techniques, our projects have been recognized by our peers as award worthy achievements. We continue to receive recognition within the industry through our award winning projects and client testimonials. .._.: Team Experience For over nine years, Doran Construction has provided a tradition of honesty, integrity and flexibility to achieve our clients' project objectives and is committed to the importance of value and delivering projects on time and within budget. Our team has extensive experience in providing pre - construction and construction services for new construction, remodels, and additions in the housing and hospitality industry. Below is a list of examples of our knowledge: • 1101 University (In Development Stage) o 170 Unit Apartment Building o Minneapolis (Dinkytown), Minnesota • Mill & Main (lit Development Stage) o 181 Unit Luxury Apartment Building o Minneapolis, Minnesota • Quarry Ridge Apartments (Construction In Progress) o 159 Unit Apartment Building o Rochester, Minnesota • The Edge on Oak (Construction In Progress) o 65 Unit Apartment Building o Minneapolis, Minnesota • 412 Lofts o 102 Unit Student Housing Complex o Minneapolis (Dinkytown), Minnesota • Sydney Hall Student Residence o 125 Unit Student Housing Complex o Minneapolis (Dinkytown), Minnesota • Dinky Dome Lofts o 10 Unit Loft Style Apartment Building o Historical Renovation o Minneapolis (Dinkytown), Minnesota • Flour Sack Flats o 59 Unit Condominium Building o Minneapolis, Minnesota • Madison Lofts o 47 Unit Condominium Building o Minneapolis, Minnesota • Franklin Lofts o 54 Unit Condominium Building o Minneapolis, Minnesota • Covenant Manor o 135 Unit Senior Housing Building o Golden Valley, Minnesota • Cottages of Maplewood o 85 Unit Senior Independent Living Building o Maplewood, Minnesota. • Glen Lake Condominiums o 92 Unit Condominiums o Minnetonka, Minnesota DORAN • o St. Paul, Minnesota COMPANIES Kelly Doran Kelly Doran is the founder and principal of the Doran Companies. Doran Companies is a diversified commercial real estate company that provides ot development, finance, construction, and property management services. `; , x, r Kelly has been involved in the real estate development business for over ,� twenty -five years, after an earlier career in commercial banking. In the past 1 twenty years Kelly has developed, constructed, leased and managed many projects that comprise millions of square feet of commercial real estate, including projects such as Woodbury Commons and Tamarack Village, in Woodbury, the Village of Blaine, in Blaine, Silver Lake Village, in St. Anthony and many others. Currently, Kelly owns in whole or part several million square feet of commercial space. Kelly has also invested in a number of retail opportunities including several restaurant concepts. Kelly has won many awards for projects he has developed and built from organizations such as the International Council of Shopping Centers ( "ICSC "), the Minnesota Shopping Center Association ( "MSCA "), the Minnesota Business Journal, the National Association of Office and Industrial Parks ( "NAIOP ") and others. He was recently selected as a member of the MSCA Hall of Fame. Kelly is a graduate of the University of Minnesota and also holds a MBA from the Carlson School of Business. Kelly is an active member of ICSC, NAIOP and MSCA. He has participated in many positions in the MSCA including committee chairperson, board member and president. V . 1 7 ! 1 ( r j 0 i 1 I 111 ; ' 1 ie, OP A.' r, , � ' ►, ( : 5 : 1 II f Illillllllllllll` '' t • J � ' � � � �� � ��� � z � y ��.�: � � � . (� � r t y ill IIIlilllllllllllilllllllllllili a I, § ,t, . , CI L , ��. ' ' .N " F 1 � Pf d b. Ml -' i:y i F •1 DORAN Sydney l lall Student Residence / Dinkydome Renovation - C 0 rVl P A N I E S Recently selected as Best in Real Estate by Minneapolis/St. Paul Business Journal r ,* . t4 kv re "S Ken Braun Vice President of Construction Ken began his career in construction in 1978 working as a project manager in the general construction division of Boisclair Corporation. His projects .* included multi - family housing, condominiums, retail centers, and K involvement in large scale mixed -use developments. Ken also has significant experience in the construction management area, where he • worked on public schools, libraries, city halls, as well as private CM projects such as office /warehouse, senior housing, churches, recording/production facilities, and casino projects. His general contracting experience includes office, manufacturing, retail, restaurant, community centers, and multi- housing. Ken has also developed a strong emphasis on higher education projects through performing arts facilities, classroom buildings, student centers, dorm buildings, and administration offices. He has held positions from head of a construction division to Vice President, and has gained a wide range of project type and project delivery experience. He has completed projects in both the public and private sectors and has a strong commitment to maintaining client relationships and customer service. Over the course of Ken's nearly 30- year career, he has managed construction projects with a total aggregate value in excess of $500M. Ken's background, along with his comfortable style, positive attitude and responsiveness to the client's goals, results in a successful experience for the entire project team. DORAN C O M P n N I P s ■ _ Project Experience ➢ 412 Lofts (in progress) • New construction of 6 -story 102 unit student reisdence ➢ Sydney Hall Student Residence / Dinkydome Renovation • New construction of 6 -story mixed -used 125 unit student residence / $20M • Renovation of historic building into 16 unit student residence ➢ Flour Sack Flats, Minneapolis, MN • 5 -story precast and wood frame condominium project / $13M ➢ Dimension Industries / Maple Grove, MN • 74,000 sf manufacturing facility ➢ Schwing America / Centerville, MN • 35,000 sf office addition and remodel ➢ Data Card Corporation / Minnetonka, MN • 100,000 sf office /manufacturing addition • 40,000 sf office ➢ Valley West Office Building / Bloomington, MN • 18,000 sf office remodel ➢ River Heights Annex / St. Paul, MN • 8,000 sf office remodel ➢ Springsted Office — Galtier Plaza / St. Paul, MN • 24,000 sf office space remodel ➢ Golden Triangle Office Park / Eden Prairie, MN • 150,000 sf - two building office /warehouse ➢ Jewish Community Center / St. Paul, MN • $2.5 million expansion and remodel of health club, offices, classroom ➢ Aspen Medical Clinic / Edina, MN ➢ Interlachen Country Club / Edina, MN • $6.5 million clubhouse remodel and expansion ➢ Covenant Manor / Golden Valley, MN • $20M 7 -story senior housing ➢ Community of Peace Academy / St. Paul, MN • classroom, media center, administration offices addition ➢ McNally Smith College of Music / St. Paul, MN • $3 million remodel, performance studios, recording studios, classrooms, offices and student lounge ➢ Augustana University / Sioux Falls, SD • 78,000 sf social science building ➢ Concordia University / St. Paul, MN • $5.5 million theatre building • $7 million library /technology center ➢ Macalester College / St. Paul, MN • $14 million campus center /student union • $6.5 million Kagin Hall addition/remodel, office /multi -use building • $5.5 million Wallace Hall dorm building remodel • $6 million Turck Hall dorm building remodel and 4 -story addition • $1 million site improvements ➢ Bluegrass Resort and Casino / Mole Lake, WI ➢ Louis XIII Restaurant / Edina, MN • $1.8 million building expansion — interior construction > LOTO Restaurant / St. Paul, MN • $1.7 million interior construction > Rush Lake Business Park / New Brighton, MN • 4- building 135,000 sf office /warehouse campus > Paisley Park Studios / Chanhassen, MN • $10 million recording/performance studio > Leech Lake Casino / Cass Lake, MN • $6 million expansion and remodel > 900 Lincoln Condominiums / Minneapolis, MN • $22 million two and four -story condominium buildings > Cottages of Maplewood / Maplewood, MN • 85 single level senior housing units ➢ Lakeville City Hall / Lakeville, MN > Anoka County Library / Anoka, MN > Brainerd Schools, Brainerd, MN • Ran a separate office in Brainerd, handling a 21/2 year, I 1 -school remodel and addition building program > 58 single family homes in South Minneapolis • 74 single family home development in Maple Grove, MN > 80 to 120 unit subsidized market -rate and senior apartments ➢ 28,000 sf retail center / Andover, MN ➢ Glen Lake Condominiums / Minnetonka, MN > Ukrainian American Community Center / Minneapolis, MN > Riverplace, Minneapolis, MN • $100 million mixed -use development including two buildings of 25 and 32 stories. Responsible for the new six -story office /retail building, new two -story retail building and retail, restaurant and office build -out throughout the new and remodeled buildings within the Riverplace complex > Galtier Plaza, St. Paul, MN • $110 million office, retail and restaurant build -out, that included two buildings of 30 and 42 stories; head team of 7 people. Ryan Freese Architect Ryan is a native to Minnesota, born and raised in Pipestone. He graduated with a Bachelor of Architecture from North Dakota State University School of Architecture and is a registered licensed Architect in the State of Minnesota. •.r it e . Ryan has been involved in architecture for over 15 years where his experience in a variety of project delivery methods provided him the opportunity to work on a range of project types which include residential, office / retail, religious, education, health care e•' t and senior housing. He is a member of the National Council of Architectural Registration Boards and the American Institute of Architects and an active member in it t � , } j J the American Institute of Architects Minnesota. Ryan lives in Maple Grove with his i 5 11, wife Erica and their two children. DORAN COMPANIES 111 __ ,,. fC y H d Larry Doran Superintendent With 30 years of construction experience, and the last 18 as a Superintendent, Larry Doran brings an expansive range of skills and knowledge to the Doran Construction team. Larry has experience working directly with design team principles to develop projects, as well as working with the end users. His completed project resume includes government, industrial, healthcare, education, light rail, casino, hotel, restaurants, and detention. !' i He has a strong attention to detail, is schedule and budget driven, and promotes a well communicated /coordinated, clean and safe project. He has a great reputation with subcontractors as he is a forward thinker and ensures a productive work experience. Subcontractors and vendors view him as tough yet fair during contract negotiations and the construction process. Project Experience > Mill & Main Apartments — in progress > Market Street Parking Ramp — Chanhassen, MN > ISD 111 Expansion and Renovations - Watertown - Mayer, MN o LEED Certified, with Geo — Thermal HVAC system > Water Treatment Plant - Brooklyn Park, MN > Northstar Rail Station construction project > Super Valu Renovations - Eden Prairie, MN ➢ Grand Casino Mille Lacs Hotel and Gaming Expansion — Onamia, MN o Seven story structural precast hotel addition • Hennepin County Juvenile Detention Center Vertical Expansion - Minneapolis, MN Y Southwest Metro Transit — Eden Prairie, MN o Post tension five story parking structure > Scott County Courthouse - Shakopee, MN > Hertz Rental Car Facility - St. Paul, MN > U.S. Federal Courthouse — Minneapolis, MN > 54 story Mellon Bank Center — Philadelphia, PA > Burdette Tomlin Memorial Hospital - Cape May, N > One Oxford Centre - Pittsburg, PA o 40 story office building and 10 story parking structure ➢ Nathan Littauer Hospital - Gloversville, N.Y DORAN COMPANIES • • • Wh y tr Doran Consuctio Owner oriented style: Your project is our project. The high level of service, attention to detail, quality, value and care we expect on our own projects would only be exceeded with what we provide our clients. It is our nature. We understand what an owner wants to come away with at the end of the day; a good value and a long lasting successful project they can be proud of. Subcontractor Commitment: As everyone in this business knows, the quality and value brought by the subcontractors and their trades- people are a key piece of the success puzzle. First, we canvas the subcontracting community to find the most competitive pricing. Second, we review an in depth scope of work, and qualify their ability to meet our project goals. We ensure quality workmanship. We have an outstanding relationship with the subcontractors in this construction comintmity and we get the "extra mile" from them, because they like working with us. They know what we expect, they do their jobs and we help them be successful. It proves to be a benefit to your project. Our People: A project and a company for that matter is only as good as the people it has. p P J p Y Y g p P Doran Construction is fortunate to have people that have built their careers with integrity, professionalism, high performance standards, dedication and customer service and with a common goal; success for our clients. Our project team is very experienced and brings all of those traits to your project in an effort to make the construction process smooth, fun and produce an exceptional product. Commitment/Relationships: Your project is important to the overall success of our company. As we continue to grow, establishing new relationships with quality clients means as much to us as adding and maintaining our own employees. As a company, we are committed to each other and bring that commitment to each project we do. Expanding our portfolio with new projects is critical to how we look in this marketplace as well to the foundation of our business. Making you comfortable with us and performing for you so we can consider your business part of our business, is our priority and goal. There is no better motivator for us. Value: Many items can go into the word VALUE. We believe that the combination of all of the items above all add up to VALUE. No one will work harder in getting you the absolute best value in terms of project cost, content and quality. Project Knowledge: We familiarize ourselves with your project. We take pride in understanding your project better than anyone. This has become one of Doran Constructions most recognized assets. You will be pleased with the project, process and Doran Construction Company from start to finish. You will not be disappointed. - Doran Testimonials "Architectural Consortium LLC has worked extensively with Doran Companies for nearly ten years. We work as a team and believe the success of our projects is due to the creative solutions, quality in construction and industry knowledge that they offer as a general contractor. Our recent experience in a tenant build -out for GNC -ISC, a student foreign exchange organization in the warehouse district of downtown Minneapolis resulted in a very happy client due to the value - engineering efforts, and timely delivery for a project with a tight dead -line and limited funding. We value our relationship and look forward to many future opportunities ". Kathy Anderson President Architectural Consortium LLC "Investors Real Estate Trust has been extremely pleased with Doran Companies as General Contractor on the Construction of our Quarry Ridge II 159 Unit Class A Apartment Project in Rochester, Minnesota. All aspects of their organization have a high level of professionalism and detail which has made us very comfortable with entire construction process. From negotiation of the contract with their legal team, to the value engineering and design capabilities of their staff, to their jobsite crew, they have all provided value add ideas to make our project a success to date. We look forward to another development project with their team. A job well done Doran Cos." Ted E. Holmes Senior Vice President - Finance IRET Properties ESG has had the pleasure of working with Doran Companies over the past few years on the creation of several innovative and successful student residential , multifamily and mixed use redevelopments including Sydney Hall, 410 Lofts and Mill and Main. Doran heroically developed the very successful Sydney Hall Student Residential and Mixed Use redevelopment in 2008 -2009 during one of the worst real estate and economic collapses in history. In developing Sydney Doran created jobs in the construction and design industries at a time when virtually all private sector construction had come to a halt. The success of Sydney Hall helped breath confidence back into the student investment and development industry in the Twin Cities. Working with Doran is unique in their ability to quickly and confidently snake decisions and move from vision to design and into construction completion. Seeing successful projects built is the ultimate sense of accomplishment and we thank Doran for having ESG on their successful << team. Aaron Roseth Vice President ESG Architects {� Doran Testimonials We are pleased with the overall efforts given by Doran Companies on the Messerli & Kramer law firm tenant improvements on floors 13 and 14 in Minneapolis, MN. The project was a success and Messerli & Kramer is asked many times to allow prospective tenants to see their space. The project was completed on time and on budget. Ken Braun, Doran's project manager, led weekly meetings to keep everyone up to date on the project's progress. 9 p Y p ress. p J p 9 We would be happy to work with Doran Companies in the future on similar projects. Christy Davis Project Manager & Designer WILSON & ASSOCIATES, ARCHITECTS Doran Construction- In Progress • ��� 1 • i 4i, .. ;, -,.., , i,,, 4 VI i i -., 1 ' I , it . i i ;,0; l . . a 1 _, 1 1 .or r.1 " .. --=',._•• ..mil, .•.,. • • • ""•• Mill Main Luxury Apartments Named for the intersection of Minneapolis' historic Main Street and the famous "Pillsbury's Best" flour mill, Doran Companies' Mill /Main luxury apartments will soon add to the graceful charm of one of the most desirable urban neighborhoods on the Mississippi river. With two -level townhouses on the ground floor and spacious one -level luxury apartments above. L— rvr—r ta 1.r C )i.. ti wr. , 4... -. 1 , ,,, / , / A + Lyndale Station The project consists of redeveloping 5 Acres for Wellington Management. Doran was selected as the General Contractor by St. Paul based Wellington Management. Hazardous material abatement, coordination between city /county and public /private utilities and compliance with a national fitness chain utilizing detailed specifications are all a part of this project. Doran is honored to be the General Contractor. ' - euziameo f. , __ _ . ' . ,. 1 ' T Menards — Richfield Doran Construction has been working with Menards for since 2006 constructing multiple projects for Menards. The Menards Richfield location consists of a new 264,000 square foot building. New masom•y walls were constructed as part of the Menards standard. { 1 Doran Construction- In Progress 1 1 1 u 111.rn to uL in ,�nr Quarry Ridge Doran Construction is currently constructing a 3 story, 159 unit market rate apartment complex with underground parking at Quarry Ridge in Rochester MN for North Dakota based IRET. The project has been ahead of schedule since the start. The client, IRET is extremely happy with the progress, budget and timelines being met. :r , t 91 ;11 , 'I !i 1 i ,' • :r 1 i r ;.-1. .11iII The Edge on Oak Currently Doran Construction is building a 6 story, 65 unit University housing project at stadium village. Underground parking and many amenities are offered at the Edge on Oak. Doran demolished the existing theater structure that was on site prior to construction. Doran is excited to offer another option on the U of M campus. One [...] y —. T. K . fipt , ' fAIMA° = l 1 I. t : Menards — Yankton Doran Construction has been working with Menards for since 2006 constructing multiple projects for Menards. The Menards Yankton location consisted of a new 1 242,000 square foot building to be constructed with a timeline of 20 weeks. New masonry walls were constructed as part of the Menards standard. This is the 18th Menards project in which [...] lip i' 1 S I . Doran Completed Projects • 12..x.. 1 - - 5 ` r ,...; 1 : .i , il , , 4,111 -- a 1 — trs rim n Ai ., II r l la t ,. The Dinkydome The Dinkydome, a University of Minnesota landmark build from 1913 to 1918 is a unique symbol in one of America's iconic college neighborhoods, and has undergone a complete renovation that has restored the original character of the historic former home of the Minnesota Bible College. Located on the corner of University and 15th avenues in the University of Minnesota's Dinkytown neighborhood, the Dinkydome is adjacent to the Doran Companies' exciting new student housing project, Sydney Hall. The Dinkydome contains several commercial businesses at street level and unique residential units on levels two and three. Noted for its superior craftsmanship, Sydney Hall and the Dinkydome have won numerous awards. 1 6. jo d o �; 7 d t ., i i 4 F ! �ry i Sydney Hall Opening in 2010 for the 2010 -2011 academic year, Sydney Hall Residences and the adjacent, historic Dinkydome Lofts created a new level of comfort and convenience for students at the University of Minnesota. Sydney Hall's 125 unit -mix of studio, one - bedroom, and two - bedroom units and the Dinkydome's 16 uniquely designed lofts have features such as stainless steel appliances and spacious living rooms. The project used a combination of wood -frame construction on two levels of concrete at Sydney Hall along with a complete interior remodel of the historic Dinkydome. Doran - Completed Projects a 4 1 4 1 1 , , :11 4 0 Ita Irk. ' ' f - LL1 ,I 1 1. 1r 4 lar d'''). r -... { • w c .. _ --.0. - 412 Lofts Following the success of the nearby Sydney Hall and Dinkydome residential mixed -use development, Doran Companies embarked on another ambitious project to bring quality student housing to the University of Minnesota. 412 Lofts has 102 units in a mix of studio, one -, two -, and three - bedroom units. Two levels of underground parking are topped by five levels of wood - frame constructed residential apartments that fit the needs of today's college student. An outstanding onsite amenities package includes a fitness center, multiple study rooms, a hotel inspired lobby, and a comfortable community room complete with a fireplace and multiple flat screen TV's. -: y Aa1 s ki' _. ltlb - llli "+�_.�, IAN Rl1 1'4' s ",'", ! ltltAN. • K r , . Madison Lofts Following in the tradition of excellence in historic and adaptive reuse, Doran Construction served as general contractor for the Madison Loft's project in Minneapolis. This challenging project included the of conversion 1 2 era a 9 0 s e a 3 story toi abandoned warehouse and the addition of both a newly constructed 4th floor and a row of townhomes to accompany the 52 condominium uits. Doran Completed ects 2� a :, s . 0 « ` w. , te a. "J r ,;,"`::i.- r 7 ilsi J I '''''. ' 4i . 0-t illii I iii; - '*� . I Silver Lake Village Silver Lake Village is a dynamic mixed -use project located just minutes from downtown Minneapolis envisioned, developed, constructed, and managed by Doran Companies & affiliates. Anchored by Wal -Mart, Cub Foods, and The Village Condominiums adjacent to the shopping center, this shopping destination revitalized a dilapidated retail space with public art and landscaping & a pedestrian friendly arcade. Dozens of retailers including Applebee's, GameStop, Papa Murphy's GNC, Chipotle, Smashburger, Park Dental, Wells Fargo, & Caribou Coffee accompany onsite office and residential components, creating a vibrant community in St. Anthony. k z R.�e ° e Oakdale Village Located at the intersection of I -94 and Radio Drive, Oakdale Village is home to a number of national retailers and restaurants. The center's distinctive architecture and meticulously landscaped grounds were noted for excellence and given the MSCA STARR award for design and aesthetics upon the center's opening. Tenants such as Best Buy, Home Goods, Sports Authority, and David's Bridal join restaurants Olive Garden, Buffalo Wild Wings, and Red Lobster as anchors. Doran Completed Projects 4. t .. t . . ry � G s ■a _ � t �� 1 C9f j ` 'k • The Point Doran Construction built a 26,000 square foot mixed use retail /office project for Greco Development. The project was part of a redevelopment effort in the Twin Cities suburb of Bloomington at France Avenue and Old Shakopee Road. Numerous shops and quick service restaurants are located at the Point. The Point houses many tenants for which Doran also performed the tenant build out. ,1 -UU_ .4' ` 7 11 rv 1 Woodbury Commons Located in the growing suburb of Woodbury, MN, Woodbury Commons combines impeccably maintained landscaping, modern architecture, and a pleasant plaza for shoppers and diners. The 270,722 sq ft center is anchored by Wal -Mart and by a combination of retailers such as Hancock Fabrics and New Balance with restaurants such as Applebee's and Outback Steakhouse all centered on the central plaza, complete with pedestrian access and gardens and a fountain. Doran Coynj,leted Projects lemot 40; 1,t 4 4 Z1 4. } r Trader Joe's In association with Trader Joe's, Doran Construction was selected via competitive bid process to complete this 12,500 sq. ft. project in 2007. Located in the western Twin Cities suburb of Woodbury, MN, the project included critical refrigeration, plumbing, HVAC and electrical systems planning and execution for the grocer's mix of organic & all - natural hot and cold goods. In keeping with the relaxed, California beach theme made famous by Trader Joe's, Doran Construction worked with Trader Joe's on the important layout and floor finish to enhance the shopper experience. ,t t ; • piNt Tamarack Village A nationally recognized shopping center, Tamarack Village set a new standard for shopping center development upon its opening. The large 797,001 sq ft center features numerous national and regional retailers including Cub Foods, Dicks, Home Depot, JC Penney, Office Max, PetSmart, and Bed, Bath, & Beyond. Noted for its excellence in design & aesthetics including distinctive architecture and landscaping, the project has been awarded the MSCA STARR award for best retail center over 100,000 sq ft as well as leasing & marketing, the International Council of Shopping Centers Award for Innovative Design & Construction of a New Center, and Shopping Center World's SADI award for New Shopping Center. Doran Co mp leted Projects armil 010 0 L S ■ V* ' V t i qt. , ...2t 1 L r Calhoun Commons Calhoun Commons is an award - winning shopping center and urban infill project Located in the highly visible and desirable area of Uptown in Minneapolis, MN. The 66,150 sq ft center is anchored by Whole Foods Market and additional tenants include Noodles & Co, Chipotle, Caribou Coffee, and Wakame Bistro. The project, which required significant creative and innovate site design methods due to the small site size and city zoning ordinances, has become a hub of activity in the Calhoun lakes area. ,/ ., 1 &''''k I k- i Gordman's Doran Construction partnered w the Robert Muir Companies to complete both the exterior work and interior tenant improvements for Gordman's, a Midwestern chain of discount t .,,,, department stores. The project, which won the 2011 MSCA STARR award for Development Process, was constructed from a vanilla shell. Doran Cotzpleted Projects tiCti Salon Lili Doran Construction worked with the owner of Salon Lili to transform a vacant gas station at the end of an aging strip mall into a vibrant beauty salon. Using an inside -out approach, the construction team was able to identify the key materials and spaces needed to meet the clients wish for unique "moments of space" including a signature mirror -ball inspired lobby and tranquil garden space for salon clients. Key challenges included the demolition of the existing gas station, dilapidated HVAC and wall systems and introduction of custom- designed materials into the new space. WM Maur fr 11 , A, ak „ • f ' i \ r :a Rivertown Village A welcome a addition to this busy St. Cloud commercial neighborhood, Rivertown Village brings d y g s a g g wealth of strong retail tenants to the intersection of Division Street and Highway 15. This 154,800 sq ft center is anchored by a variety of national retailers, including Bed, Bath, & Beyond; Old Navy; Party City; Granite City Brewery; Old Navy; and Barnes & Noble. Doran Completed Projects Rp 1.4„„ir • * mol\ r Menards — Eden Prairie Doran Construction has been working with Menards since 2006 completing over 17 projects throughout the upper Midwest. The Menards Eden Prairie location consisted of a new 262,000 square foot building. Doran and Menards had to work with closely with the city of Eden Prairie to ensure the building would fit in with the current structures and overall look the city wanted to achieve. The experience level of Doran Construction and quality subcontractors achieved success. L AFITN 5 S S .% 1.” OA �!Plf� �iU LA Fitness — Uptown Doran Construction completed the build out of a 31,400 square foot athletic facility in the heart of Uptown for LA Fitness known as their signature club. This was a second story location in a high traffic urban mall. LA Fitness has been a repeat client of Doran Construction as Doran has constructed multiple projects throughout the Twin Cities metro area since 2007. LA Fitness considers Doran Construction as a preferred contractor. Key challenges of this project included the reconstruction of a large interior space in an occupied retail center in the heart of the vibrant Uptown neighborhood of Minneapolis. Doran Completed Projects t.. yy � Ap 1 i + X1(1 1 1 ' 1 Maurices The Maurices Mall of America location is one of several retail store build out projects that Doran Construction has completed over the years for Maurices. The project consisted of 4,750 square feet of retail store build out. Communication was integral as this was a high profile project that required coordination with a national retailer. The project required compliance with rules and regulations for construction to not disturb or disrupt other tenants at the largest shopping mall in the United States. The project was completed in 9 weeks. 1 . 7 :- I I W1, _ a PetCo Doran Construction worked with national retailer PetCo to complete this 14,207 square foot space that blended the trademark architectural features of the retailer with the overall design of the shopping center. The grass lot site, originally slated for expansion for another retailer, saw the ground -up construction of the space using a combination of techniques to effortlessly integrate the new construction into the existing center. Challenges included maintaining design objectives while meeting strict budget goals but Doran Construction was able to meet these challenges through a combination of innovative solutions. Doran Completed Projects • mrs J, ., ,,,,.. I . 4-- , . .1 ) A5 1,0 I i r \ Y II .r a McDonald's Doran Companies was selected to demolish the existing restaurant and then construct a new McDonald's restaurant to meet worldwide brand and store design specifications. The project was Doran Companies largest partnership with the global chain and the on- budget and on -time project was followed by numerous further partnerships with Twin Cities McDonald's franchise remodels. _4ml t-r'i ,.Ivy i C .e \fn \fl1 y ,,h 5 / .. I y ` " 1111 � r . Smashburger Smashburger, a Colorado -based quick service restaurant focused on classic burgers & shakes � od th 2,034 sq. ft. retail space in summer 2009. Doran Construction completed landlord pene and e tenant improvements to the St. Anthony of location. Located in Silver Lake Village, both was Smashburger's first Minnesota location and has led to the successful opening of seven more Smashburger's throughout the Twin Cities metro area. The project utilized a variety of restaurant construction techniques, advanced refrigeration and heating systems. Doran Completed Projects 1 tar 4',.1 Cr , i ly m .. ; ;, I1 pn " ifs �' . ; V 'r Orr t Holiday Inn Doran Construction completed an extensive exterior and interior remodel of the Bloomington Airport South/Mall Area Holiday Inn in 2008. The 173 room hotel includes an indoor pool & spa area, a health and fitness center, and a business center as well as 4,000 square feet of meeting space. Doran Construction was an integral part of the renovation, serving as General Contractor and adding expertise in exterior finishes, surface parking solutions, water systems for the indoor pool and atrium, and sound techniques for corridors. .. . e t,, , i 1 . :b ., t 1 Ali, -s atr 1 ,r' Chippawa Valley Regional Airport Partnering with longtime client Menard's, Doran Construction completed the addition of a hanger at the Chippawa Valley Regional Airport near Menard's Eau Claire corporate headquarters. The 30,000 sq ft hanger, to be used to facilitate Menard's significant growth in the upper Midwest, was a challenging but highly successful project and Menard's continues to be a valued Doran p p Companies partner. Agri 1 Doran Companies Awards ... ...:... MSCA STARR AWARDS 2010 2006 1999 1996 Sydney Hall /Dinky Dome Oakdale Village Calhoun Commons Tamarack Village Redevelopment Design & Aesthetics Development Process Retail over 100,000 2010 2005 1998 1996 Sydney Hall /Dinky Dome Silver Lake Village Tamarack Village Tamarack Village Mixed Use Design & Aesthetics Leasing and Market Strip Center Market 1993 2009 2002 1998 Best Buy Woodbury LA Fitness The Village of Blaine Tamarack Village Store Design over Renovation Remodel Design & Aesthetics Design & Aesthetics 5,000 sq ft 1996 2008 1999 Pier One 2009 LA Fitness St Cloud Rainbow Free Standing Retail Kelly Doran Renovation Remodel Village Design & Aesthetics under 20,000 sq ft MSCA Hall of Fame MN Construction Shopping Center Association Award NAIOP Award ICSC Award World Magazine 2011 1998 Sydney Hall /Dinky Dome 2005 Tamarack Village 1998 Project of the Year -New Silver Lake Village Innovative Design & Tamarack Village Construction Award of Excellence Construction SADI Award Business Journal Award 2012 2010 w y The Edge on Oak Sydney Hall /Dinky Dome 2004 2001 Best in Real Estate Best Overall Silver Lake Village The Village of Blaine - - 2010 Sydney Hall /Dinky Dome 2006 Best in Real Estate The Village of Blaine NAHB Honor Award 2005 2003 Bear Rock Cafe Maple The Village of Blaine Grove Awards of Excellence Masonry Design & k Grand Award Construction r Doran Companies References Construction References: Ted Holmes, Sr. Vice President Andy Bragg Construction Jim Carlson Manager IRET LA Fitness International Assistant Manager 10050 Crosstown Circle Suite 1350 East Touhy Avenue Menard, Inc. 105 Eden Prairie MN 55344 Suite 180 West 4777 Menard Drive (952) 401 -4836 office Des Plaines, Illinois 60018 Eau Claire, WI 54703 -9625 (952) 401 -7058 fax andrewb @lafitness.com (715) 876 -2808 office tholmes@iret.com (715) 876 -2423 fax jcarlson @menard- inc.com Paul Reinke, Sr. Dtr Arnie Gregory, Project Development Development Haugland Company Greco Real Estate Buzz Kleinmann, Owner Development 5850 Opus Parkway 129 North 2nd Street, Suite 100 Kleinutann Realty Suite 108 Minneapolis, MN 55401 Holiday Inn Bloomington Minneapolis MN 55343 (612) 630 -2450 office 5301 East River Road, Suitt 101 (952)- 936 -9225 office (612) 630 -2453 fax Fridley, MN 55421 (952) 936 -9003 fax agregory@grecollc.com RJBUZZK @aol.com preinke@hauglandco.com Trade References: Mark R. Ryan, President Jeff Lepinski, Project Manager Dave Hove, Vice Presidenl Carl Bolander and Sons, Inc. Swanson & Youngdale Collins Electric 251 Starkey Street 6565 West 23rd Street 278 State Street St. Paul, MN 55107 Minneapolis, Minnesota 55426 St. Paul, MN 55107 (651) 224 -6299 office (952) 545 -2541 office (651) 255 -0137 office (651) 223 -8197 fax (952) 525 -1945 fax (651) 292 -0359 fax Mark @Bolander.com 1Leoinski@SwansonYoungdale.com David.Hove @collinsolutions.cc Bob Walker, President Tim Conroy Mike Reinhardt, President Braxton Hancock & Sons Olympic Companies Sonus Interiors 1315 Fifth Street South 2823 Hedberg Drive 2440 Fernbrook Lane Nortl Hopkins, MN 55343 Minnetonka, MN 55305 Suite 200 (952) 939 -4100 office (952) 546 -8166 office Plymouth, lvIN 55447 (952) 939 -1883 fax (952) 544 -8869 fax (763) 557 -0720 office Braxton@BraxtonConstruction.com TConrov @olvmpicCompanies.com (763) 557- 0845fax MReinhart @sonusinteriors.co Architect References: Kathy Anderson, President David Graham, AIA Architectural Consortium ESG Architects, Inc. 901 North Third Street, #220 500 Washington Avenue South Minneapolis, MN 55401 Minneapolis, MN 55415 (612) 436 -4030 office (612) 339 -5508 office (612) 692 -9960 fax (612) 339 -5382 fax KAnderson @ArchConsort.com DGraham @esg.com t it"71111 . .. 1 � '' I '1 :r tl!', li , : , , • .: . 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Ci q t. an 'p to c� o O bn d .e, 0 „ O N Q� o . O 'b td O C O p, ° O Y O t O O u . � p. tb N , a. Wt1 N v Al ":' :` e,1.5 i�`^� "p0 0c ,p w" P a �, G q v F' idb(? �• °g FI � �o `'" u 0 d c " i v �c F �a, P- a,o -0 P a c d 'ia' `�{§ qwc, > P. p' 9 C E 2 P P Q G a.. -i, c . n > . g il o 6 .1 g O P bn o ' e) t o 8 a' c 8 o. Hv Va. G: c. -E' .a� o p.�Q 3 1 MINNESOTA REjournals.com REAL ESTATE JOURNAL * * *. VOLUME 28, NUMBER 2 ©2011 Law Bulletin Publishing Co. February 2012 Doran Compan continue to find success w student housing in Twin Cities By Dan Rafter for Minnesota Real Estate Journal M ulti- family remains the strongest of the commercial real estate segments in Minnesota' t That holds especially true for student • i t pp housing. Just ask Kelly Doran, princi- 1l it .pled' rT '' Q pal of Bloomington, Minn. -based . ' ,4 . , i - ' Doran Companies. Student housing, � . II I ,' O ' I l � II especially around the University of I. 0 0 ! t ���. , � � Minnesota, is keeping Doran and his ;, a 4 "•l�� l l staffers busy in the Twin Cities. 91 1, j !• ( ' 11.;; ,:� , ;� I �t rI Minnesota Real Estate u u1 I -� „q 2 s ' , a! ti �' r recently spoke with Doran about the Journal a l i :� , . �� � " '� �� local student-housing market. �__, I (I; _' ► i 0a1 N p , i . t ii , il , 11 , : , x . Is ilk Minnesota Real Estate Journal: ; I I) £ ■■' ., *t "!.ti,, u . j) " I ' ,11 Can you provide us with a quick • update on the student - housing prof- It. lei li :;1 11 � i eo; , it ii ., ects that Doran Companies is work- !! --' — 1 '" . , u , -: �� �� ing on now or has recently complet- `' y Y ,� ed? ,, Kelly Doran: We have been busy. �` We recently completed three projects pleted the 412 Lofts, too. That's 102 1101 University. That project will be and we have one now under constnic- units with underground parking near 94 units with 255 bedrooms. We hope tion and another one in planning. the university. In all, Sydney Hall has to have 1101 University completed 205 bedrooms, the Dinkydome has 43 for back -to- school in 2013. MREJ: What are these projects? bedrooms and 412 Lofts has 190 bed - Doran: We recently Sydney Hall rooms. MREJ: It certainly seems as if near the University of Minnesota. We are also working on The Edge, demand is high for student housing in That's a 125 -unit, six -story building another student - housing project near the Twin Cities. with two levels of underground park- the university. That project will fea- Doran: It is unique to the Universi- ing and about 15,000 square feet of ture 65 units with 85 bedrooms, ty of Minnesota campus. Because the street level commercial space. We underground parking and a small university is an urban campus, it has also recently completed the Dinky- amount of commercial space. We historically been difficult to secure dome, a renovation of an historic hope to start compete construction on enough land to build student - housing building into 16 housing units and this project in July or August of this projects. It's not like many college 10,000 square feet of commercial year. We are currently in planning for campuses in other parts of country space near the university. We com- w � x 4' w . „ # st fi „. n 10 11111 ' :` - ”' - . -''' 410;1'$ C" Pt, if , 5 .-. 'i, 0 s' i r ' ' 9 f j 1 ill ! 4 . Jil 1 os , i ' ,.., M�� its J !�r i ! t ., .,t. • i 11t . ir • � . � V .fat i r � • ' � .IL. ' ) �� s• �� ' .W v's ♦:. .+1 w. wr9 +w .. tiM. .wg.y.. i:0. •" "a I .gliglit that are in small towns or on the rooms and washers and dryers in happen in our campus area because of edges of urban areas. Those campuses every unit. We have exercise facilities the availability of land. have abundant land where you can in the building. We have community build elaborate housing projects. and study rooms. They all have their MREJ: The University of Min - Historically, the University of Min - own parking. They all have 24 -hour nesota campus necessitates a different nesota has, in comparison to other security that includes security cam- approach, right? Big 10 schools, among the lowest eras and electronic locking systems Doran: The projects that are being number of students living on or near on the buildings and unit entry doors. built around the university campus campus. There appears to be a We build a convenient, amenity -rich here have higher density levels. They demand for more housing, more qual- and secure product. consist of taller buildings. They are ity housing at the campus. What's more likely to be five- or six -story really happened is that the rent that MRCJ: Have all these amenities buildings rather than the three -story you are able to charge for these apart - made an impact that you see on other campuses. ments has reached the level at which Doran: There has certainly been you can justify the construction and enough of a demand for our product. MREJ: What do you do to make development costs to build the build- Our buildings by t the time we corn- sure that you win these construction ings. That is the major economic plete them are 100- percent leased. projects? aspect that has made these projects There appears to be a strong demand Doran: It's our reputation. When possible. for these buildings. How much and we tell people we're going to do how deep that demand is I don't know something, we do it. When we get a MREJ: Student housing has yet. No one knows that yet. The one project going, we finish it. We don't changed dramatically since the days thing that is different at the Universi- waste people's time. We don't tie up a in which we were students. Can you ty of Minnesota is that it is less likely property without developing it. list some of the amenities that your that there will be the mega huge proj- new projects include? ects that you see at other college cam - Doran: All of our apartments have puses across the country, where granite counter tops, stainless steel someone builds 600 units in one area appliances, wood floors, private bath- at one time. It is unlikely that will Additional information received from Doran Companies on July 10, 2012 July 10, 2012 email from Bill Stoddard with attachments: Kim as previously mentioned Doran Companies is interested in building, owning and being a long -term operator of the proposed senior living community in your city. Pursuant to our recent submittal to you, the below and attached information will include more detail on the following items: Updated Concept Site Plans (attachment); Sample Bank Financing Letter (attachment); Updated Bio of William Stoddard (attachment); and Updated Architectural Information (please go to websites for esgarchitects.com and waicontinuum.com). Updated Concept Site Plans: The attached pdf will show you what we have been envisioning in -house regarding the overall concept. The revised senior housing portion has a larger footprint resulting in more units (80 to 90), more surface parking, more underground parking and a better overall "feel" and traffic flow. A morning room and breezeway connects it to the proposed Senior Center. The second page shows the relocated and expanded public Community Area now adjoining the rear of the Steeple Center. We envision about a 6,000 sf lushly landscaped area replacing the unsightly asphalt with grass, abundant shrubs, a water feature and a covered pavilion that is screened from the parking area. Walking paths, benches for sitting, a wooden arbor and some sort of monument to the historic area, possibly St. Joseph's church or other local point of interest can be located here. This area would have two sidewalk access points to the Steeple Center, along with access to the Senior Center, which we also expanded by about 300 sf, and access to South Robert Trail. Sample Bank Financing Letter: We work with numerous lenders to secure the best deal once a project is approved which is a condition of any bank. As you know we previously submitted letters from TCF Commercial Bank depicting interest in this project and a bit about our history with them. Also attached is a sample financing offer letter from another lender, Premier Banks depicting their terms if in fact we worked with them on this project. In any event it is relatively easy for a company with our history to secure bank financing for this project once we are further down the line and have a signed Developers Agreement with the City of Rosemount for this project. Updated Stoddard BIO: Attached is an updated BIO of William Stoddard who will be the point person at Doran Companies for this project on the development and operations aspects for senior housing . Bill has developed owned and operated senior living communities in Florida (where he still owns one) and will stake his reputation to developing and operating this community for the long -term. Updated Architectural Information: At Doran Companies we utilize both our in -house design staff headed by registered licensed architect Ryan Freese and outside architectural firms including Elness Swenson Graham Architects Inc. (Jill Krance, AIA VP & Director of Senior Housing), WAI Continuum (Scott Koester, VP), and others depending on the strengths we wish to utilize for our projects. We have not yet discussed if dswg architects is available and has the resources and expertise we desire for this project. Please refer to their websites in addition to our own for a better understanding of projects we have collaborated on and worked together on. Ryan has worked on senior housing projects ranging from independent and congregate living to skilled nursing projects. He has worked for clients including The Good Samaritan Society's communities among others. For our attached Concept Plans, in -house designer and Project Manager Patrick MacNabb who hails from the City of Rosemount and whose mother still lives there was our point person and designer. Designing the "right community" for his hometown is of utmost importance to Pat. We hope the additional information gives you a feel for what we can do here at Doran Companies. We would be most happy to arrange a visit at one of our many multi - family or student housing properties to give you an idea of the high quality work we do. We take great pride in our work and pledge to own and operate the Rosemount Senior Living Community for a very long time. [X)RAN NI 1 , 11:S William Stoddard VP of Development p 952.288.2047 1 e billPdorancompanies.com www.dorancompanies.com 1 c 612.802.3666 1 f 952.288.2001 This email has been scanned by the Symantec Email Security.cloud service. For more information please visit http: / /www.symanteccloud.com n -' o d s C , 0 za� mz !3 1- E 11 CZ co 0 O m y Z v fi t; -am -om n� m.- ,m sm c 3 N m m a zm O i I C< ME p fl fl Z C X ...z Z H P: Ar EZ 5 a E ma a a rn m 0 � c m O mp • Z < Z (il Z -,0 Q m > p� Z m p m m V? Z H SD � x'2 mn N m A, A N P > mO m . 1 4 Aa O! � p co , T... c m LN m o kW m, N W A N., Q NA.? ? 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Regan Chairman 2866 WHITE BEAR AVENUE • MAPLEWOOD, MINNESOTA 55109 -1384 • PHONE 651 - 777 -7700 • FAX 651- 777 -3761 • www.premierbanks.com July 5, 2012 Bill Stoddard and Kelly Doran Doran Companies 7803 Glenroy Road Minneapolis, MN 55439 BY EMAIL RE: Financing for Rosemount Senior Project Dear Bill & Kelly: Premier Bank (`Bank') is pleased to present the following contingent financing offer to Doran Companies or its affiliate to be established for Rosemount Senior Project under discussion. The credit facility described below is not meant to be all- inclusive, but instead express major terms of a potential Bank's financing to Doran Companies or its affiliate to be established for the Rosemount Senior Project ( "Borrower "). The bank's loan documentation if loan closed, may certainly address matters not herein discussed. Potential proposed loan terms are as follows: BORROWER: Doran Companies or its affiliate to be established GUARANTOR: Kelly Doran and/or related entities TBD LOAN PURPOSE(S): Fund 75 -80% of project costs during interim construction and lease up Periods with potential conversion to amortizing loan with proceeds used to develop Rosemount Senior Project proposed on site adjacent to Steeples Center in Rosemount. LOAN AMOUNT: 75 -80% of proposed project costs. INTEREST RATE: Rates to be defined acceptable to borrower and lender. PAYMENTS: Interest monthly for 12 months converting to monthly payments of principal and interest in appropriate amount needed to amortize balance over 20 years. AMORTIZATION: 20 years. MATURITY DATE: Up to 5 years. 1 Y[Y[ FDI C MAPLEWOOD • OSSEO • ROSEVILLE • WHITE BEAR LAKE • BLAINE WALMARTM, • WOODBURY WALMART*, • HUGO Q tea. FEES: 1.00% origination fee plus costs. REPAYMENT: Cash flow from project operations or other guarantor cash flows. COLLATERAL: ls` real estate mortgage and assignment of rents on project to be developed known as Rosemount Senior Project. OTHER REQUIREMENTS: 1. Subject to standard requirements such as title insurance and other terms and conditions as determined in the discretion of Premier Bank and/or its participants. 2. Establishment and maintenance of depository relationships of Borrower or rate to increase by 1.00 %. 3. Annual CPA prepared Financial Statements of borrower and guarantor(s)during term of loan to be received by May 1 annually. 4. Borrower required to prepare a month to month proforma income statement for year I and an annual pro forma presentation for years 2 and 3 prior to closing. 5. Semi annual financial summaries to be provided during lease up period. 6. Receipt of opinion of Borrower's counsel confirming Borrower is properly authorized to borrow funds and borrower and guarantor understand requirements within documents. 7. Appraisal providing loan to value of permanent loan not to exceed 75 %. 8. Loan documentation by bank and legal counsel as applicable. 9. Other requirements as determined by lender(s) and lender's legal counsel at its discretion. This letter is not intended as a commitment to lend but is a summary of terms of financing to be considered for project financing for the Rosemount Senior Project on which your company is working. Terms may be more formally defined upon completion of developer's agreement with City of Rosemount, final construction plans and costs, among other items. appreciate the opportunity to present this Proposal Letter to lend to Doran Companies. If you have any questions regarding the terms of this proposal, please contact me at 651 - 633 -8880 or 651- 503 - 7250 I look #'orward to hearing from you. Sincerely, / /,Se O. Regan President- Rosevill ice 2 DORAN CONSTRUCTION C s M` William Stoddard, MBA, Vice President of Senior Housing Development and Operations at Doran Companies has developed, owned and operated several assisted, independent and memory care communities for about T half of the past 32 years of his career. A member of the Assisted Living Federation of America, Bill's experience includes direct involvement in the healthcare industry ranging from the regulatory state licensing agencies in Florida and Minnesota, to collaborating with the numerous professionals including administrators, home health care aids, certified nursing assistants, doctors, nurses, financial reimbursement professionals and many more. Bill has planned, developed, designed, financed, managed and operated assisted living communities with more than 60 full -time employees and $millions in annual revenue. He understands that the number one priority is the people hired to care for the residents, placing utmost importance in the administrator to the certified nursing assistant hire. Bill has championed memory care, respite and day care services for the elderly. His developments have been successful by catering to seniors and offering them options that help residents maintain dignity and independence, while offering amenities including centralized services, wonderful meals, state of the art remote monitoring and a wide variety of activities. Bill's mission is developing communities where residents are happy to call it their home. Bill has a broad range of financial, marketing and operations management experience having implemented resident activity, wellness, food service and disaster response plans. Bill continues to own an assisted living facility in Florida (Paradise Care Cottage) one of his early ventures in the senior housing arena. Although he has sold his other Florida communities, Bill enjoys daily communication with his dedicated staff. In fact his current administrator and the majority of the existing 26 staff members are still employed at the same location after 13 years! Bill is excited about his full -time role with Doran Companies and leading them into the senior housing industry. Bill and his team understand that today's seniors seek independent and assisted living within their existing community where their living is enhanced by amenities and where they are close to family, friends and familiar surroundings. Previously, industry standard studio apartments with 3 /4 kitchens were the norm, which trended to somewhat larger apartments. Bill understands that even more amenities and larger apartments with trends going beyond resort -style living with common areas offering libraries, bistro /cafes, pubs, spas, exercise /yoga rooms, WiFi, internet cafe, sundries market, arts & crafts, numerous daily activities and restaurant comparable meals and more are needed today. In his earlier career he founded and operated an "Inc 500" environmental engineering & consulting company - Summit Envirosolutions with 5 nationwide offices and up to 90 professionals under his direct control. Bill has an MBA from St. Thomas University and a Bachelor of Science degree in construction management from the University of Wisconsin - Platteville. GENERAL CONTRACTOR I CONSTRUCTION MANAGEMENT I PRE - CONSTRUCTION SERVICES BUILD TO SUIT 1 DEVELOPMENT SERVICES I DESIGN BUILD 7803 Glenroy Road, Suite 200 Bloomington, MN 55439 952- 288 -2000 Fax: 952- 288 -2001 www. DoranCompanies.com Additional Information Received from Doran Companies July 11, 2012 Email from Bill Stoddard July 11, 2012 in response to questions below: Sure Kim here goes: Senior Housing projects incorporating both Assisted Living (AL) and Independent Living (IL) operations (most pertinent to your proposed senior housing) I've been involved with recently where I developed, planned, built and operated include: Paradise Care Cottage of Port St Lucie Paradise Care Cottage at St Lucie West Paradise Care Villas Paradise Care Villas II at St Lucie West PCC at Tradition I have been involved in about 5 more AL /IL developments as either a consultant that was built, or my own that was in the planning stages but didn't get constructed. I have also been involved in another twenty or so developments of multi - family or related developments with overall responsibility. On my team at Doran Companies we have about six of our twenty -five or so employees who have firsthand experience in mostly the construction, development, management and maintenance portions of senior housing, Including Kelly Doran who was on the Board of Directors at Walker Methodist. In addition to these full -time in -house employees I consider my team to include the following: 1 currently own Paradise Care Cottage, a 50 bed licensed assisted living facility with 26 full -time employees. I have day -to -day contact with: My licensed Administrator who has overall policy and procedure duties including extended congregate care (ECC) reporting responsibilities; My Assistant Administrator; My full -time in -house registered nurse (RN); My medical technician; My Activities Director; and Home Health Care Professionals (outside agency who is located in- house). Other consultants to us at both Doran Companies and PCC include: Registered Dietician for nutrition, food expertise and menu preparation; Medical Consultants including an in -house Doctor (hours per week varies) and visiting RN (hours vary as needed); Wellness Consultant and Trainer Home Health Care professionals; and Pharmacy- Medication consultant and vendor. I consider the above people to be on "my team" as I have weekly interaction with them depending on my needs. As soon as we open a senior living community in the greater metropolitan area the "team landscape" will change more with a greater mix of in -house professionals. If you have any more questions feel free to call or email me at your convenience. IX)RAN William Stoddard VP of Development p 952.288.2047 1 e billPdorancompanies.com www.dorancompanies.com 1 c 612.802.3666 1 f 952.288.2001 From: Lindquist, Kim [ mailto: kim .Iindquist@ci.rosemount.mn.us] Sent: Wednesday, July 11, 2012 2:45 PM To: William Stoddard Subject: your bio Bill. Could you give me a few other project names you have been involved in and also how many other employees at Doren are in your "team ". tx just putting some final touches on the council memo. K Kim Lindquist Community Development Director City of Rosemount Ph 651 - 322 -2020 Additional information received from Stonebridge Companies on July 10, 2012 L r STONEBRIDGE Companies July 10, 2012 • Kim Lindquist Community Development Director - City of Rosemount 2875 145 Street West Rosemount,'MN 55068 - Re: Rosemount Senior Development Dear Kim: Roughly one year ago Stonebridge submitted a proposal to be selected as the developer of a Senior Assisted Living development at the intersection of Robert Trail and 143 Street West. l am writing this letter as an indication of our continued interest in being the developer for this property if the opportunity presents itself. Since making our presentation in 2011, Stonebridge has completed, as contractor, one assisted livingfacility in Oak Park Heights and has under construction, assisted living facilities in Lilydale and in Shoreview and a general occupancy senior building in Oak Park Heights. We are familiar with the development and construction of senior living facilities and with the financing of these - developments. I have included a letter from Dougherty & Company, LLC and from Twin City Federal indicating their interest in working with Stonebridge on the financing of this - development for us,. We can provide additional bank references if you would like. It is our opinion that financing this development would move very quickly and would be seamless. I have included our updated resume — you will note from this that we have been successful in financing and developing a significant amount of residential real estate and have the banking/lending relationships to support our claim that obtaining financing for this Rosemount proposal would not be an issue. • 1 believe that Stonebridge demonstrated through the development of the Waterford property . its willingness to work with you and City staff in arriving at a successful property that I feel was done as a joint effort or to coin the phrase,•Public/Private Partnership. We would look forward (952) 431 -5700 - Fax (952) 431 -5701 - 15734.Foliage^Avenue - Apple Valley. MN 55121 • • to another opportunity to work with the City of Rosemount on the senior site to produce a building and product that both of us would be proud of and one that we would own and operate for many years. We are not merchant builders and have held as investments the developments that we have done to date. 1 would envision that if we are given the opportunity to move forward with this development that we would proceed immediately to develop the site plan, obtain the City approvals and then complete the building plans and move forward with securing our financing and begin construction. - If there is anything further that I can provide to you at this point, please do not hesitate to let me know. Sincerely, STONEBRIDGE COMPANIES Wallace Johnson, President • - - • • DOUGHERTY & COMPANY LLC June 21, 2012 Ms. Kim Lindquist Community Development Director City of Rosemount 2875 145 Street West Rosemount, Minnesota 55068 • Dear Ms. Lindquist: . Wallace Johnson with Stonebridge Companies asked if I would provide you with a letter regarding our interest in working with Stonebridge to arrange both construction and term financing for a Senior Assisted Living Facility in Rosemount. Dougherty has excellent relationships with a number of banks, taxable bond buyers and equity sources and we believe that what Mr. Johnson has discussed with us regarding this project, we feel confident that we can provide the financing necessary for them to construct and own this Assisted Living development. During the past several years, Dougherty has been instrumental in arranging for over $750 million of financing for Senior Assisted Living projects similar to the one being proposed for Rosemount. Dougherty has a strong lending relationship with the principals of Stonebridge, have recently completed financing two properties for them totaling roughly $38 million in term debt, and we are working with them on another transaction in excess of $45 million that we expect to close this fall. We are familiar with their financial strength and with their ability to complete and deliver projects on time and within budget. If there is something else that we could provide to you in support of their proposal to be selected as the developer and owner of this development, please feel free to contact me. Sincerely, bi/ David B. Juran Executive Vice President DBJ:cn 90 SOUTH SEVENTH STREET • SUITE 4300 • MINNEAPOLIS, MINNESOTA 55402.4108 612.376.4000 • 800.328.4000 MEMBER SIPC & FINRA e COMMERCIAL BANKING Kim Lindquist Community Development Director City of Rosemount 2875 145 Street West Rosemount, MN 55068 Dear Ms. Lindquist: Wallace Johnson with Stonebridge Companies asked if I would provide you with a letter regarding our interest in working with Stonebridge to arrange both construction and term financing for a Senior Assisted Living Facility in Rosemount. Prior to joining TCF as Executive Vice President of Commercial Real Estate, I was the Regional Executive in Minneapolis for LaSalle Bank. When 1 was with LaSalle, we provided over $100 million in financing for Stonebridge Companies to build, construct and own certain multifamily housing and condominium developments in the Minneapolis /St. Paul area. Since joining TCF, this is the type of financing that we are actively pursuing from new sponsors including Stonebridge and Mr. Johnson. Given the quality of my past experience and association with the principals of Stonebridge and being very familiar with their development abilities and their financial strength, TCF would have a strong interest in working with them on this project. We understand that this is a work in process and that all final plans and approvals are not yet in place but we can move very quickly once they let us know they are going forward with this project. If there is something else that you require at this time, let me know. We are looking forward to being involved with the development and with Stonebridge. Sincerely, Thomas R. Bobak, Executive Vice President Commercial Real Estate MEMBER FDIC A • KUM i LNG LENDER A STONEBRIDGE ONEBRIDGE Companies STONEBRIDGE DEVELOPMENT AND ACQUISITION, LLC STONEBRIDGE CONSTRUCTION, INC. Stonebridge Companies (Stonebridge Development and Acquisition, LLC, Stonebridge Construction, Inc. and Stonebridge Land Acquisition, LLC) were formed in 2002 to be the developer and general contractor for the $32 million Hearthstone rental townhome and apartment development in Apple Valley, Minnesota. Subsequent to the formation of these new companies, other construction and development opportunities surfaced that have elevated the Stonebridge Companies into one of the major residential builders and developers of both for sale and rental housing properties in Minnesota. Stonebridge has completed in addition to the Hearthstone property, the $7.4 million Arbor Pointe Senior development in St. Paul; the $20 million Graham Place senior development and the $52 million River Crossing development in St. Paul; the $3.7 million Kestrel Pines rental townhome development in Bemidji, Minnesota, the $11 million Lakeville Woods development in Lakeville, Minnesota; the $24 million Pointe at River Crossing development in St. Paul, and; is completing construction on the $20 million Waterford Commons development in Rosemount, Minnesota. Stonebridge has also completed construction of the $22 million Park Crest condominiums in Bumsville, Minnesota; the $20 million Aquila Commons senior cooperative in St. Louis Park, Minnesota, and; the $18 million Westmarke Condominiums, in St. Louis Park. To date, Stonebridge has completed over 1,000 units of rental housing for its own account plus 261 units of for sale condominium and cooperative housing units and 27,000 square feet of retail and office space incorporated within several of the housing properties. Stonebridge has borrowing relationships with US Bank, Wells Fargo Bank, MinnWest Bank, Bank of America, Commerce Bank, Bridgewater Bank, the Minnesota Housing Finance Agency, Ramsey County, the Dakota County Community Development Agency and the City of St. Paul. Stonebridge has issued tax exempt revenue bonds through Dakota County, Ramsey County and the City of St. Paul. Stonebridge Companies received the prestigious award for Best Multifamily Development from the Business Journal for its Gateway Housing Development that includes the Graham Place, River Crossing, and the 145 unit Highland Pointe condominiums on a redevelopment site in St. Paul's Highland Park. In addition, Stonebridge received the Best New Development MADACS award from the Minnesota Multi- Housing Association for its Apple Valley Hearthstone development; the Best Senior Apartment for Graham, and; Property Excellence Awards for Graham and Arbor Pointe. 15734 Foliage Avenue / Apple Valley, MN 55124 STONE1RIDGE Companies The owners and officers of the Stonebridge Companies are Andrew Chase, David Anderson, and Wallace Johnson. Wallace Johnson serves as President and CEO, Mr. Chase and Mr. Anderson, although actively involved in the company, contribute the majority of their time to their independent commercial, residential development and sales companies. Stonebridge Construction, Inc. is overseen by Brad Friesz, an individual with significant multifamily construction, contract negotiation and construction management skills. Brad is charged with overall control of the construction activities and staff for Stonebridge Construction. Stonebridge Construction, Inc. was the general contractor for all of the Stonebridge developments with the exception of the Kestrel Pines property in Bemidji. Contracted work has been over $145 million. Following is the list of Stonebridge Construction projects: 1. Waterford Commons — Rosemount, Minnesota $13,703,575 2. The Pointe at River Crossing — St. Paul, Minnesota $14,106,400 3. Park Crest Condominiums — Burnsville, Minnesota $13,976,940 4. Westmarke Condominiums — St. Louis Park, Minnesota $10,005,896 5. Lakeville Woods — Lakeville, Minnesota $ 8,635,223 6. Hearthstone — Apple Valley, Minnesota $23,000,000 7. Graham Place — St. Paul, Minnesota $12,087,000 8. Aquila Commons Cooperative — St. Louis Park, Minnesota $13,500,745 9. Arbor Pointe — St. Paul, Minnesota $ 4,521,261 10. River Crossing — St. Paul, Minnesota $33,967,450 Stonebridge Construction began in 2010 engaging in independent contracting for others. To date Stonebridge Construction has completed or has under construction over 700 units of apartments and senior assisted living facilities and contracted work in excess of $72 million. In our opinion Stonebridge Clients enjoy a measure of confidence both in construction quality and economy because we specialize in becoming involved with the construction process during the planning and design stage so that when plans are completed, pricing is firm and we are able to deliver buildings ahead of schedule, on budget and with no surprises. We have excellent project superintendents and project managers that make the entire building process seamless for our clients. We stand behind and take pride in our workmanship and the use of quality products, subcontractors and suppliers. We have achieved and maintained an excellent reputation with architects, engineers, lenders and with the cities and building officials where we have worked. Stonebridge Construction offers unparalleled service and quality. 15734 Foliage Avenue / Apple Valley, MN 55124 Council Item, Minutes, and RFQ for Senior Housing Project . . 4 ROSEMOUNT EXECUTIVE SUMMARY CITY COUNCIL . City Council Regular Meeting: October 4, 2011 AGENDA ITEM: Selection of a Development Team to Negotiate Terms for a Senior AGENDA SECTION: Housing /Senior Center Project Adjacent ` �� �� � to the Steeple Center i' � PREPARED BY: Dwight Johnson, City Administrator; Kim Lindquist, Community Development AGENDA NO. q _a , Director ATTACHMENTS:. Request for Proposals APPROVED BY: NI J RECOMMENDED ACTION: Motion to Begin Discussions Between Development Representation Associates (DRA Ltd) and the City to Negotiate Terms for a'Senior Housing /Senior Center Project Adjacent to the Steeple Center BACKGROUND i The City Council has been discussing the possibility of a senior housing project adjacent to the•Steeple Center for several years and in early 2011, made redeveloping the remainder of the old St. Joe's site into a senior housing /senior center project one of the top goals for the City. A Request for Qualifications (RFQ) was developed and distributed to all known major developers of senior housing in the metro area. A meeting for interested developers to explain the project was held on July 27th and responses were due on August 18th. : , • Is, _ f Three responses were received and the respective development teams were interviewed by the Council on September 22nd. The Council further reviewed the proposals and discussed them at a special workshop meeting on September 28th. At that meeting, Council members determined that the proposal from Development Representation Associates provided the overall best response to the RFQ. The team from DRA includes DSGW Architects of North St. Paul and Ebenezer Management Services of Minneapolis (part of Fairview Health Services). Mr. James Trucker is the President of DRA and the team leader. The other two proposals were from the team of Winkelman Building Corporation with Frisbie Architects and a team from Stonebridge Companies. RECOMMENDATION Based on Council direction at the September 28th special workshop meeting, it is recommended that a motion be approved to begin discussions with Development Representation Associates (DRA Ltd) for the purpose of negotiating plans and the terms for development of a`senior housing /senior center project adjacent to the Steeple Center.. Excerpt of City Council Minutes October 4, 2011 NEW BUSINESS 9.a. Selection of a Development Team to Negotiate Terms for a Senior Housing /Senior Center Project Adjacent to the Steeple Center Community Development Director Lindquist summarized the information provided in the staff report. Council Member Kearney questioned the developer's plans for drafting a development agreement. Ms. Lindquist stated that the City has a developer agreement it typically uses. She stated there were decision points to be tackled before moving forward. Mayor Droste questioned the decision points. Ms. Lindquist stated the site plan issues will need to be resolved in order to complete the concept plan. In addition, the financial components of the project will need to be addressed. It is a privately funded senior housing project but an open house will be planned to make the public aware of the project and the plans. Council Member Weisensel added that three strong teams proposed ideas for the project and with that there are a lot of expectations for the project. Motion by Shoe - Corrigan. Second by Weisensel. Motion to Begin Discussion Between Development Representative Associates (DRA Ltd) and the City to Negotiate terms for a Senior Housing /Senior Center Project Adjacent to Steeple Center. Ayes: Kearney, DeBettignies, Shoe - Corrigan, Droste, Weisensel Nays: None. Motion carried. - ..:::. �„ • - �, ,, REQUEST FOR QUALIFICATIONS FOR SENIOR HOUSING PROJECT N THE CITY OF ROSEMOUNT Ju Iy 1 2011 ROSEMOUNT SPIRIT OF PRIDE AND PROGRESS Page 1 of 5 Summary of the Request for Qualifications The City of Rosemount is seeking a developer or development team with which to partner for development of a Senior Housing project at the Steeple Center Complex. The property is located on the northern edge of Rosemount's historic Downtown and is currently owned by the City. The 3.16 acre site was originally part of a public purchase that allowed construction of the Robert Trail Dakota County Library, which is south of the senior housing site. Also on the site is the iconic former St. Joseph's church that has been renovated for public use and renamed as "The Steeple Center." The Center will remain, and there is also a strong interest in providing a public senior center and public plaza on the property. The school portion of the existing structures will be removed. With removal of the school building and maintaining some land for the Steeple Center, there is approximately 2.56 acres for senior housing, senior center, and shared parking. The City commissioned a Preliminary Estimate of Senior Housing Demand Study by Maxfield Research Inc. that indicated there is a need for senior housing with services and memory care units within the community. The 36 square mile City is a third ring suburb of St. Paul, with a population of approximately 21,000. The Downtown has functioned as the activity hub of the community and would supply some commercial services to senior housing residents. The site is within walking distance of the public library, City Hall, and Central Park. The site is adjacent to the Independent School District 196 Rosemount campus, which includes elementary, junior high and high schools. There are numerous trails and walkways in the neighborhood. The development team is expected to possess, at a minimum, the following characteristics: 1. The financial capacity to absorb pre - development soft costs associated with final planning for the project, and to fund costs for construction of the project. 2. The ability to manage or contract with a management company to operate the senior facility. The outcome of the RFQ is the selection of a developer or development team to work with the City on development of a senior housing and accessory senior center on City -owned land. The decision on which team the City will select will be based primarily on the team qualifications, concept design and financial proposal. The City will also consider the proposed development and its consistency with the goals of the City Council. Page 2 of 5 Project Background The Rosemount City Council purchased the St. Joe's church and school in 2004, primarily to provide acreage for the planned Robert Trail Library. Since that time the City has implemented renovations to the church structure to permit public use of the facility. In 2007 a Task Force Report was issued about the St. Joseph's Facilities. The 23- member Facilities Task Force recommended that the church structure remain and be used for a public purpose that benefits the community. The existing church, renamed the Steeple Center, is currently used for civic events and private parties and weddings. Consistent with the recommendation of the Task Force report, the long term goal for the building is its use as an arts and cultural center. Approximately 1,300 square feet of additional space should be illustrated on the concept plan for storage and restroom facilities for the Steeple Center activities. The Task Force also recommended keeping the school building. However, it was recognized that maintenance of the school structure would be dependent on the future use of the entire complex. Further, the City would need to evaluate the buildings contribution to the future complex use and if it made economical sense. For purposes of this RFQ, it should be assumed that the school building is removed from the site. The Steeple Center will remain. Most recently, the City has been approached by the Rosemount Area Seniors organization with a request for dedicated space for its programming needs. There is interest in providing a dedicated space of 5,000 to 10,000 square feet for public use within the context of this project. The space would be primarily for the community's senior population but could also be used for the general public. The space could be a dedicated space within the senior housing project, a space adjoining the facility, or totally independent. Shared use of facilities should be explored. The concept plan in this RFQ should note a senior center and illustrate the appropriate location and footprint. There is also an interest, given the site location, to provide a public plaza which could function as a gathering space for site and community uses. Goals of the RFQ The City's goal with the RFQ is to find a development team to collaborate on design and implementation of a senior housing project at the St. Joseph's complex. The City is primarily looking for assisted living senior housing and memory care units. The owner may be a not - for - profit organization but it is preferred that the owner is a property tax paying entity. The City is also looking to combine a senior center into the development site. Financial responsibility for the cost of the property, construction of the senior center and ancillary Steeple Center space, demolition of the existing school and the construction of the senior housing project will be negotiated between the City and the chosen developer. As part of the RFQ, the proposer should provide a financial plan which estimates costs and anticipated financial responsibilities of the development team and the City. Page 3 of 5 Goals are further described in the principles below: Site Design: • More dense development than typical suburban mixed use to provide a more compact structure and project. • High emphasis on pedestrian linkages from the site and within the site. • Ensure some green space for residents and to provide necessary stormwater ponding. • Site design must recognize the existing residential neighborhood and mitigate any potential impacts. Architecture: • Architectural design that meets the intent of the design guidelines for Downtown Rosemount. • Street presence for building footprint while permitting pedestrian access. • Shared parking for senior housing, senior center, and Steeple Center. Some resident parking may be provided underground and surface parking screened from front/public views. • Landscape design to enhance development and complement streetscape. • Quality exterior materials and timeless building design. • Emphasis on more urban, traditional downtown design. Planning Process: • Project proposals will require Planning Commission and City Council review and approval. Location The City is anticipating development to occur around and adjacent to the Steeple Center all on City owned property. In total there is 3.16 acres which would include the Steeple Center building. The site is bounded by State Highway 3 to the east, 143 Street West to the north, Cameo Avenue to the west, and the County Library to the south. An existing residential neighborhood is to the west, and careful design and planning must occur to reduce impacts to the neighborhood. In contrast, however, it is anticipated that the primary access to the site will be from the west, Cameo Avenue. Shared parking for the Steeple Center, senior housing and senior center should also be accommodated on site. There is a public parking lot across (east of) Highway 3 although there is no designated crosswalk mid - block. There is also some ability to have on- street parking for special events and some shared parking with the Robert Trail Library on off peak hours. Page 4 of 5 City Background Information The City of Rosemount is a developing suburb in Dakota County. The western one -third of the City has urbanized development, generally residential. Rosemount's Downtown was the center of the community from a retail perspective until County Road 42 became increasingly busy, drawing larger commercial establishments. The City is experiencing steady growth with building permits for approximately 80 new residential units for each of the last two years. Earlier in the decade growth was at a more accelerated pace with approximately 1,000 new residents per year. According to the 2010 Census the City population is 21,874. Although the community is younger due to new growth of single family homes, the census notes 790 seniors (people over 75) in 2010 and the Maxfield Study predicts 920 seniors in 2015. Documents referenced in RFQ can be found at www .ci.rosemount.mn.us /seniorrfq : Development Framework for Downtown Rosemount Downtown Design Guidelines Preliminary Demand Estimate for Senior Housing in Rosemount MN St. Joseph's Facilities Task Force Report Required Components of RFQ Response 1. Description of Developer or Development Team • Lead Developer or Development Team. • Technical Partners (architects, engineers, etc.). • Background and expertise of team lead personnel within each firm. • Each firm's experience in senior housing projects; development and management. 2. Description of Two Comparable Projects • Minnesota and /or national examples. Local examples are preferred if possible so that the decision - makers can visit sites. • References from similar project communities including city staff names, titles, and phone numbers. • Brief description of developer involvement in the public participation process for each project. 3. Finance Plan • Demonstration of financial capability of lead developer and /or development partners. • General estimate of costs and financial responsibilities of the development team and the City for the senior housing project, senior center, additional Steeple Center space, land acquisition, and site work. Page 5 of 5 4. Project Management of Development • Familiarity with design issues, construction techniques, and project management skills relative to phased, mixed -use facilities and an overview of a plan to coordinate design elements and phasing of public improvements. • Proposed ownership structure of project. 5. Proposed General Development Information • Preliminary concept site plan. • Architectural elevations of project with similar design and materials. • Development schedule, including phasing and anticipated date for full build -out based upon expected construction start of spring 2012. RFQ Schedule and City Contact The City requests that all questions related to this RFQ be directed to City staff. The City contact for all questions, including other documents, or regarding the response of the RFQ, is: Kim Lindquist, Community Development Director City of Rosemount 2875 145 Street Rosemount, MN 55068 Ph. 651 - 322 -2020 Fax. 651 - 423 -4424 kim .lindquist@u,ci.rosemount.mn.us RFQ Schedule July 13, 2011 Request for Qualifications distributed. July 27, 2011 Developer meeting held at City Hall for answers to questions regarding the RFQ. August 18, 2011 15 copies (plus one electronic copy) of responses to RFQ due at 4:30p.m. Mid - September Interviews of the top two to four firms held at City Hall. October 4, 2011 City Council consideration and discussion of selection of development team. The City reserves the right to alter any of the selection criteria, selection schedule, or to reject any or all proposals without cause.